Milestone company maintains its non-current assets at cost. A provision for depreciation account is used for each type of asset. The company depreciates machinery at the rate of 15% per year while fixtures are depreciated at a rate of 10% using the reducing balance method. Depreciation is to be calculated on assets in existence at the end of each year, giving a full year’s depreciation even if the asset was bought in the course of the year. The following transactions in assets have taken place: 2018 January 1: Bought machinery €3,000, fixtures €500 2018 July 1: Bought fixtures €440 2019 October 1: Bought machinery €4,000 2019 December 1: Bought fixtures €280 The financial year end of the company is 31st December. You are Required to show: (a) Machinery account (b) The fixtures account (c) The two-separate provision for depreciation accounts
Milestone company maintains its non-current assets at cost. A provision for
2018 January 1: Bought machinery €3,000, fixtures €500
2018 July 1: Bought fixtures €440
2019 October 1: Bought machinery €4,000
2019 December 1: Bought fixtures €280
The financial year end of the company is 31st December.
You are Required to show:
- (a) Machinery account
- (b) The fixtures account
- (c) The two-separate provision for depreciation accounts
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